What is the European Union (EU)?
The European Union (EU) is an alliance that encompasses both political and economic collaboration among its 27 Member States located mostly in Europe. It seeks to ensure the free movement of people, goods, services, and capital, promote judicial cooperation, and maintain common policies on trade, agriculture, and regional development.
European Union’s History & Aim
Discussions about creating a common European organization started during the Second World War, with one main intention in mind, peace on the Old Continent. The rationale was to create a common market and an European economy, which would make it unreasonable to go to war with neighboring countries. Instead, trade facilitation and repairing relations by common investments was meant as a remedy to the horrors of the early 20th century.
EU Member States
In summary, originally six states started an ‘European Coal and Steel Community’ in 1952, Germany, France, Italy, the Netherlands, Belgium, and Luxembourg. The ECSC would later evolve into the modern European Union, which comprises 27 Member States.
Moreover, further enlargement is expected with Albania, Montenegro, North Macedonia, Serbia, Bosnia and Herzegovina, Ukraine, and more. Accession talks were however stopped with Turkey, due to EU’s concerns about Turkey’s democracy quality.
Poland’s Joining the Community
Poland joined the European Union on 1 May 2004, with 77.6% of citizens voting ‘YES’ in the 2003 Referendum. This event is regarded as one of the most important in the modern history of Poland.
Economic and Legal Benefits of EU Membership
Freedom of Goods Movement
Since joining the EU, Poland has tapped into a vast market of nearly 500 million consumers, significantly boosting its trade capacity. In 2022, Poland’s exports surged to EUR 343.8 billion, underlining its increased trade activities primarily with other EU countries, which accounted for 75.8% of exports [Stat.gov.pl] The EU’s single market has also driven technological and quality enhancements across various sectors.
Freedom of People Movement
EU membership has allowed for easier labor emigration, as the EU nationals can travel and work freely in other Member States. It is common for Poles to travel to Germany or the Netherlands for employment with zero or minimal restrictions and documents, all because of the creation of an EU citizenship, which is granted automatically to anyone who holds the nationality of an EU country.
EU Law Effect
Because of the direct and indirect effect of EU law, the Polish national courts must uphold and enforce EU laws. This means safeguarding against potential abuses by employers, or the state, and enhancing the legal predictability for business operations, for a common European standard.
Freedom of Capital Movement
Foreign direct investment (FDI) in Poland has shown impressive growth, with significant investments from countries like Spain, Germany, and the Netherlands. The FDI inflows reached about $29.5 billion in 2021, reflecting Poland’s appeal as a prime investment destination within the EU (Lloyds Bank Trade). The FDI in Poland is primarily concentrated in industries such as Automotive, Electronics, Information and Communication Technology, and Medtech. These industries benefit directly from the free movement of capital, allowing them to attract necessary funding and technological expertise from across the EU.
Social Benefits of EU Membership
Environmental Improvements
EU membership has compelled Poland to adopt stricter environmental standards, leading to significant improvements in air and water quality (see. EU Green Capital Finalist 2023 – Kraków). Initiatives funded by the EU have promoted sustainable development, energy efficiency, and the adoption of renewable energy sources across the country.
Technological Advancement and Research
Access to EU funding programs like Horizon 2020 has propelled Polish scientific research and innovation. Polish researchers and institutions now participate in advanced European research projects, enhancing Poland’s technological prowess and innovation capacity.
Social Cohesion and Infrastructure Development
Projects such as the European Regional Development Fund or the Cohesion Fund have been instrumental in developing Poland’s infrastructure—modernizing roads, railways, and digital infrastructure, which have been crucial for regional development and economic equality. A ‘shared financing with European Union fund’ sign is common to be seen near many investments all around Poland.
Cultural Exchanges
Programs such as Erasmus+ have not only enhanced educational opportunities for Polish students but also created a greater cultural understanding among European citizens. These exchanges strengthen the cultural ties between EU countries further promoting the original European Union’s premise. It can be observed that EU Membership is (partially) responsible for almost doubling the number of Poles seeking higher education in other Member States countries since 2004 (WENR).
Conclusion
With May 1st 2024 marking the 20th anniversary of Poland joining the European Union, it is important to look back and realize the benefits that membership provided. The economy boost, social benefits and foreign investments fulfill and are often higher than anticipated.
Poland’s commitment to these EU goals makes it an attractive destination for international investors looking for stability and growth opportunities. At Adwisen, we are here to provide assistance to help you benefit from the EU’s supportive environment.
